NFC stands for Near Field Communication. It is a standard defined by the NFC Forum<\/a>, a global consortium of hardware, software, credit-card, banking, network-providers and others who are interested in the advancement and standardizing this technology. As\u00a0the name implies, it’s a set of short-range wireless communication\u00a0standards used in mobile phones and other electronic devices. It operates on the frequency of 13.56 MHz with data transfer of up to 424 kilobits per second.<\/p>\n NFC<\/a>\u00a0and NFC allows you to share small payloads of data between an NFC tag and an NFC enabled phone or between two NFC enabled phones. This may sound more like <\/p>\n Contactless cards<\/a>, that we discussed in an earlier post, behave like NFC tags and emit NFC style radio frequency\u00a0signals when provoked by a contactless reader terminal. So, in theory, a mobile phone with an NFC controller can do the same as long as they conform to the protocols defined by payment networks.\u00a0And that is exactly what is happening when you use a Google or Isis wallet. We will discuss how this happens in practice in an upcoming post on So, can you just replace all of your contactless<\/a> credit and debit cards with Google wallet or Isis wallet and call it a day. Not yet. There are a couple of reasons for that.<\/p>\n First and foremost, today, contactless terminals\/readers are not plentiful. There are just over 200K contactless terminals across US. The advantage of using your contactless plastic card is that it also comes with a magstripe<\/a> for backward compatibility with traditional terminals. We do not have that luxury with an NFC enabled phone.<\/p>\n Second, provisioning a contactless application to an NFC enabled phone is a much more complicated process involving a\u00a0larger ecosystem of participants like \n Welcome to the Mobile payments FAQ and\u00a0not so FAQ<\/a>\u00a0series\u00a0and you are on FAQ\u00a0#12.\u00a0The idea behind this series is to\u00a0share and learn as much as possible about the field of mobile payments.\u00a0If you like, you can read all of the FAQs on the Mobile Payments<\/a>\u00a0category or by visiting the Table of contents<\/a> page.<\/p>\n","protected":false},"excerpt":{"rendered":" What is NFC? NFC stands for Near Field Communication. It is a standard defined by the NFC Forum, a global consortium of hardware, software, credit-card, banking, network-providers and others who are interested in the advancement and standardizing this technology. As\u00a0the name implies, it’s a set of short-range wireless communication\u00a0standards used in mobile phones and other electronic devices. It operates on the frequency of 13.56 MHz with data transfer of up to 424 kilobits per second. NFC\u00a0and RFID (Radio Frequency Identification) are sometimes used interchangeably, but NFC is really a newer version or extension of RFID. RFID waves can have very... RFID<\/code> (Radio Frequency Identification) are sometimes used interchangeably, but NFC is really a newer version or extension of RFID. RFID waves can have very long ranges\u00a0as\u00a0they are generally used in manufacturing, inventory and object tracking.\u00a0In contrast, NFC limits the range of communication to within 2 to 4<\/code> inches. This makes NFC more suitable for secure applications like payments.<\/p>\nBluetooth<\/code> because it is also a communication technology between two bluetooth enabled devices over a short range. Yes, they are similar in that aspect, but they are also different in other aspects. For instance, NFC doesn’t need a pairing process; it\u00a0can read from passive NFC tags; it consumes low power; it connects to its target very quickly ( one tenth of a second) etc. These qualities make NFC a good candidate for mobile payments. Bluetooth has other advantages that makes it a better choice for a different set of use cases.\u00a0We will discuss about Bluetooth, BLE and Beacons in a different post.<\/p>\n![\"\"](\"http:\/\/www.gmarwaha.com\/blog\/wp-content\/uploads\/2014\/09\/nfc.jpg\")
<\/p>\ncard-emulation<\/code> mode for NFC.<\/p>\nSP TSM<\/code>, SE TSM<\/code>, MNO<\/code>, Issuing banks and\u00a0the\u00a0complexity involved with security, key management and over-the-air<\/code> provisioning cannot be discounted either. Technically, these have\u00a0been solved, but not all Issuing banks are ready to invest in it\u00a0yet. That said, the industry is slowly, yet steadily moving towards a digital wallet. So, it is going to happen sooner rather than later, but don’t hold your breath.<\/p>\nMobile Payments Blog Series<\/h4>\n
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